“To amend the Internal Revenue Code of 1986 to extend and expand the work opportunity tax credit.”
No CRS summary available for this bill.
This section extends the Work Opportunity Tax Credit (WOTC)—which provides employers a tax credit equal to a percentage of the first-year wages (generally 40% up to $6,000, or $2,400, with higher amounts for certain groups) paid to individuals from targeted groups facing significant barriers to employment—through December 31, 2030 (from December 31, 2025); replaces the definition of "qualified ex-felon" (previously, a felony convict hired within one year of conviction or release) with "qualified criminal justice-impacted individual" (i.e., an individual certified as having been convicted of a felony or incarcerated or on probation for at least 90 days, hired within three years of the last such event); and adds as a new targeted group "qualified opportunity youth" (i.e., out-of-school youth as defined in section 129(a)(1)(B) of the Workforce Innovation and Opportunity Act). The changes apply to individuals who begin work for the employer after the date of enactment. This section further directs the Secretary of the Treasury to issue regulations as needed to implement the changes and requires the Comptroller General to conduct a study on the efficiency of the WOTC administrative process—focusing on interagency coordination, data collection, and simplification of employer requirements—and submit a report with recommendations to Congress and the Secretary within one year of enactment.